Business, 16.11.2019 05:31 heysorryguys

Burger barn has been named as a plaintiff in a $5 million lawsuit filed by a customer over the addictive nature of the company's french fries. burger barn's attorneys have advised them that the likelihood of a future obligation from the suit is remote. as a result of the lawsuit, burger barn should:
a. ignore the lawsuit in its financial statements
b. disclose the lawsuit in the notes to the financial statements
c. recognize a $5 million liability on its balance sheet for the contingency
d. settle with the customer immediately for $5 million to avoid harmful publicity.

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